Lack of Transparency in Handling Complaints
Unmesh Gujarathi
Sprouts Exclusive
The Maharashtra Real Estate Regulatory Authority (MahaRERA), established with the aim of protecting homebuyers and promoting transparency in real estate dealings, is under scrutiny for alleged corrupt practices and its failure to address the grievances of aggrieved buyers. Complaints against builders, particularly regarding the Godrej Nest project at Lokhandwala, Kandivali East, are piling up, with buyers accusing the authority of being biased towards developers and failing to uphold its mandate.
Key Allegations Against MahaRERA
1. Favoring Builders Over Buyers
Flat buyers allege that MahaRERA frequently grants possession extensions to developers without considering the financial and emotional toll on buyers. Buyers are forced to accept such extensions as binding, leaving them burdened with EMIs, rent, and other expenses. There is no visible accountability from MahaRERA to ensure builders compensate buyers for delays.
2. Lack of Clarity and Accountability
MahaRERA approvals for project extensions lack transparency, with no clear justification for granting them. Buyers question why conditional sanctions, directing developers to meet specific obligations (e.g., timely completion, reimbursement for delays), are not imposed. The absence of such safeguards leaves buyers vulnerable to exploitation.
3. Non-Responsive Approach
Despite multiple complaints and correspondences, buyers claim that MahaRERA remains unresponsive to their concerns, raising questions about its commitment to protecting their interests.
Also Read: What Is Mantralaya’s ‘Golden Gang’ Up To?
The Godrej Nest Case: A Breach of Trust?
Flat buyers at the Godrej Nest project have highlighted a range of issues, alleging unethical practices by developers Godrej Properties Ltd. and Shivam Mega Structure. Over 500 buyers are affected, and their grievances paint a grim picture:
False Commitments on Pricing:
Buyers were promised all-inclusive pricing during booking, only to face unexpected charges such as Land Under Construction (LUC) fees, which were never disclosed upfront.
Delayed Possession Without Amenities:
Buyers claim they paid premium rates expecting timely delivery and world-class amenities. However, they were handed incomplete units, with key amenities still under construction.
Unjustified Interest Charges:
Many buyers were charged hefty penalties for delayed payments, even when the delay was due to the developers’ inability to secure necessary approvals. Buyers also allege that developers exploited the COVID-19 pandemic to unfairly charge interest, ignoring the financial hardships of buyers.
Alterations to Project Plans:
Initial agreements promised a nine-floor podium for parking and other facilities. However, the developers reduced this to seven floors, allegedly converting the extra space into flats for profit. Buyers accuse MahaRERA of approving these changes without ensuring that the benefits were passed on to them.
Sprouts Investigation: Unmasking the System
The Sprouts Special Investigation Team, led by Unmesh Gujarathi, has uncovered alarming patterns in how MahaRERA operates. Senior officials at the authority are accused of colluding with developers, disregarding buyer complaints, and prioritizing financial gains over justice.
Buyers Demand Accountability
In a letter to the MahaRERA chairman, buyers have sought answers to several pressing questions:
1. Why are extensions granted without ensuring compensation for buyers?
2. Why does MahaRERA fail to impose penalties on developers for breaching agreements?
3. Why is there no mechanism to protect buyers from hidden charges like LUC fees?
4. Why is MahaRERA silent on developers’ unethical practices, such as altering project plans?
A Call for Reform
The Godrej Nest buyers, along with other aggrieved parties, are now contemplating filing a Public Interest Litigation (PIL) to address the systemic issues within MahaRERA. They demand stricter regulations, greater accountability for developers, and a more buyer-centric approach.
Way Forward
The Sprouts Investigation Team urges MahaRERA to:
– Conduct an independent audit of pending complaints.
– Introduce clear guidelines for granting project extensions.
– Establish mechanisms to ensure that buyers are not burdened by hidden charges or delays.
– Hold developers accountable for breaching commitments made during the booking process.
MahaRERA was envisioned as a beacon of hope for homebuyers, but its credibility is now at stake. As complaints mount and trust erodes, urgent reforms are necessary to restore confidence in the system. Without immediate action, MahaRERA risks being seen as an enabler of unethical practices rather than a protector of buyer rights.
The ball is now in MahaRERA’s court. Will it rise to the occasion, or will it allow corruption and inefficiency to overshadow its purpose?
Unmesh Gujarathi
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